A Real Fix for Trump’s Conflicts of Interest

Congress should establish a public trust to oversee his company.

Shortly before becoming president,
Donald Trump
announced that his business empire would be placed into a trust overseen by his two eldest sons. All profits generated by foreign governments at his hotels will be transferred to the U.S. Treasury. The plan represents a step in the right direction, but it isn’t enough to settle doubts about conflicts of interest in the Trump administration.

Congress and the president should instead work together to establish a public trust that oversees the Trump Organization throughout Mr. Trump’s presidency. All profits from the business would be paid directly to the U.S. government. His family could still be involved in the business, but ultimate authority would go to a congressionally appointed independent government trustee or board.

The profits could be used, among other things, to offset the cost of Mr. Trump’s weekend trips to Mar-a-Lago or the extra security required for his family at Trump Tower in New York. Since the government would have ultimate control over the business, it would have an incentive to align the interests of the business with those of the country. If a particular deal is good for the Trump Organization but bad for the U.S., the company would side with what’s best for America.

The president in West Palm Beach, Fla., Feb. 17.
Photo:
Getty Images

This solution is not without difficulties. As head of the executive branch of government, Mr. Trump could define the “national interest” in ways that unduly favor his business interests. The Trump children and other employees of the Trump Organization, who know better than any government overseer, could manipulate “profits” and investments to postpone revenues and reduce the amounts to be paid to the government.

Nevertheless, government ownership and control may be the best of many imperfect options. It would provide greater transparency about exactly what the Trump Organization’s interests, assets and liabilities are. This could facilitate more-open debate on how conflicts of interest should be resolved. Ambiguity only encourages unfounded speculation and conspiracy theories.

Congress could try to go it alone and pass such a plan with veto-proof majorities, though it would be standing on shaky legal ground because of the Fifth Amendment’s prohibition on the taking of private property for public use without just compensation. But Mr. Trump should realize that such a proposal is in his best interest. This setup would severely undercut any argument that he is working in his company’s interest, not the country’s. As soon as he leaves office, his family will likely inherit a strong and untainted business.

If Mr. Trump continues his current strategy, he can expect an endless stream of lawsuits, boycotts, political criticism and second-guessing of his motivations. Handing off the company would stop much of that immediately. And if he does well as president, his business will prosper. Joining these public and private interests would be exactly the kind of innovative solution that Mr. Trump applauded as a businessman.